GMM Pfaudler, yesterday reported a 29% (YoY) jump in consolidated net profit at Rs.27 crore on a 22% jump in net revenue at Rs.186 crore.

EBITDA was up 29% at Rs.31 crore and margins improved from 20% to 21%.

The company said that the improvement in profitability is expected to continue on the back of incremental revenue, operating leverage, and some of its strategic initiatives paying off.

Its Hyderabad manufacturing facility commenced operations – this is the unit it had acquired from De Dietrich Process Systems India (DDPSI) in July 2020. Its other two units are in Gujarat and Maharashtra.

The company expects to close the Pfaudler Inc acquisition by the end of the year.

The company declared payment of second interim dividend of Re.1/share. 29th Oct is the Record Date.

The stock price is in the green today on the back of this performance. It rose 2.5% to Rs.3675 and remains currently around the same levels. The stock is trading at a discount compared to its average historical valuation – its 52-week high is at Rs.6913.85 though PE is pretty high at 72.29 v/s industry average of 25.60.